HOUSE BILL REPORT

HB 2362

BYRepresentatives R. King, Smith, Prentice, Walker, Vekich, Cole, Jones, Wang, Leonard, Basich, Rector, Winsley and Wolfe

Providing incentives for state agencies and institutions of higher education to participate in industrial insurance safety programs and return-to-work programs.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, Prentice, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

Rereferred House Committee on Appropriations

Majority Report:  Do pass.  (27)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Dorn, Doty, Ebersole, Hine, Holland, Inslee, May, McLean, Nealey, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Michelle Hauth (786-7384)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 3, 1990

BACKGROUND:

Under the industrial insurance law, state agencies and institutions of higher education may participate in retrospective rating programs that pay premium refunds if the agency reduces its claim experience during the retrospective plan period.  State law does not allow agencies or institutions to retain these premiums between fiscal periods.

The retrospective rating program also provides these agencies with assistance in creating effective safety programs and better claims management.  As part of these loss control programs, several state agencies have adopted or are considering programs that provide return-to-work opportunities for employees who are capable of light or modified duty during the period in which the employee is recovering from the industrial injury.  Return-to-work programs are not mandated by state law.

SUMMARY:

Industrial insurance refunds earned by state agencies and institutions of higher education from the retrospective rating program will be deposited in the industrial insurance premium refund account.  Funds from the account may be appropriated to the participating agencies or institutions for programs within the agencies, with preference being given to programs that promote employee safety and early, appropriate return-to-work for injured employees.  No agency or institution may receive an appropriation greater than the amount earned by the agency as a premium refund.

The State Board of Personnel and the Higher Education Personnel Board are directed to adopt rules establishing employee return-to-work programs and requiring each state agency or institution to adopt a return-to-work policy.  The programs would provide eligibility for two years for any permanent employee who is receiving industrial insurance temporary total disability compensation and who is unable to return to his or her previous work, but is physically capable of carrying out work of a lighter or modified nature.  The boards' rules must also (1) allow opportunity for state-wide return-to-work when an appropriate light duty job is not available in the appointing agency; (2) require each agency or institution to appoint a program coordinator;  (3) require that job applicants receive an explanation of the return-to-work policy; (4) require training of supervisors on implementation of the return-to-work policy; and (5) coordinate participation, as appropriate, of employee assistance programs.

Any full-time equivalents necessary to implement the return-to- work program are to be used only for the program and the net increase in full-time equivalents is temporary.

The Department of Labor and Industries is directed to appoint a state employee vocational rehabilitation coordinator to assist the return-to-work programs.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

Effective Date:Section 2 of the bill takes effect July 1, 1990.

House Committee ‑ Testified For:    (Commerce & Labor)  Julie Grant; Mark Brown, Washington Federation of State Employees; and Doug Connell, Department of Labor and Industries.

(Appropriations)  Representative R. King, prime sponsor; Brett Buckley, Department of Labor and Industries; and Gary Alexander, Assistant Director, Risk Management Division, General Administration.

House Committee - Testified Against:      (Commerce & Labor)  No one.

(Appropriations) No one.

House Committee - Testimony For:    (Commerce & Labor)  Many state workers who are injured on the job do not get back to their job.  Getting these workers back to light duty or modified duty will aid the worker and, in the long run, reduce the costs of workplace injuries.  Although some state agencies have very effective return-to-work programs, many others have no policy.  The state would be a more responsible employer if guidelines were in place for all agencies.  Allowing agencies to request the appropriation of their retrospective rating plan refunds would also add incentives for return-to-work programs.

(Appropriations)  Not all state agencies are doing their best in employee safety and return to work programs.  This legislation is intended to provide incentives.  This will set up a separate account for agency and higher education institutions retrospective rate savings to be deposited and then later appropriated for safety programs.

House Committee - Testimony Against:      (Commerce & Labor)  None.

(Appropriations)  None.